Senate Bill No. 254 - Explanation
This bill aims to make changes to section 3796.031 of the Revised Code in relation to how financial transactions for medical marijuana are processed.
Key Terms:
- "Authorized financial institution" - Refers to a state-chartered bank or credit union approved by the department of commerce to be part of the closed-loop payment processing system.
- "Closed-loop card" - Indicates a debit card authorized by the department of commerce to be used specifically for transactions within the closed-loop payment processing system.
- "Closed-loop payment processing system" - Describes a cashless system set up by the department of commerce to monitor and support financial transactions involving medical marijuana entities (e.g., cultivators, processors, dispensaries) and registered patients and caregivers.
- "Medical marijuana entity" - Refers to a licensed medical marijuana cultivator, processor, dispensary, or testing laboratory.
Main provisions of the bill:
Firstly, the director of commerce has the authority to establish rules for the closed-loop payment processing system. These rules require certain actions to be taken:
- Medical marijuana entities and registered patients/caregivers must activate and establish an account within the closed-loop payment processing system.
- Medical marijuana entities must deposit money from sources other than marijuana sales into an authorized financial institution and utilize the closed-loop card for financial transactions involving employees, independent contractors, sellers, and other medical marijuana entities.
- Registered patients and caregivers must deposit money into an authorized financial institution and use the closed-loop card to purchase medical marijuana products from licensed retail dispensaries.
- All financial transactions involving medical marijuana entities, registered patients/caregivers, their employees, independent contractors, sellers, and other entities must be conducted through the closed-loop payment processing system using the closed-loop card.
The bill also ensures that medical marijuana entities and registered patients/caregivers have access to an authorized financial institution.
The closed-loop payment processing system may include record-keeping and accounting functions to track all parties involved in the transactions. This system aims to prevent revenue from marijuana sales from going to criminal enterprises, gangs, and cartels, as well as the diversion of marijuana to other states or distribution to minors. It also prevents state-authorized marijuana activity from being used as a cover for illegal drug trafficking or other unlawful activities.
Lastly, the information recorded within the system can be accessed by the state board of pharmacy, department of commerce, and relevant state and federal law enforcement agencies, including the United States department of the treasury's financial crimes enforcement network.